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More than that though, the robots only win when they're fighting panicked human traders who try to maximize and fire blind (or at least a few seconds slower). S
by eksith 13y ago
More than that though, the robots only win when they're fighting panicked human traders who try to maximize and fire blind (or at least a few seconds slower). Speaking of intelligent programs, they failed to achieve equilibrium with their natural environment, as Agent Smith would say.
The takeaway:
HFT also lacks the two things it needs the most: trading
volume and price volatility. Compared with the deep,
choppy waters of 2009 and 2010, the stock market is now a
shallow, placid pool.
- nissimk 13y agoYes, that's the integral section of the article, but what it's really saying is that at least one component of this is the current cycle low in volatility and volume. This is a classic wall st shakeout when the best capitalized firms that make it through the down part of the cycle come back much stronger when their market returns because their competition closed up shop. They haven't scared everybody away, they're just suffering a market downturn in volatility and volume right now. The robots win when people trade more and when prices move around more. When those conditions return, the robot party will be back on.